Luca Mining Secures Funding for Campo Morado Optimization Program

Canada-based polymetallic company Luca Mining announced it secured resources for its funding package for Campo Morado’s optimization program. The company expects this funding package to result in productivity increases that will unlock the true potential of the Campo Morado mine. 

Luca Mining reported it secured CA$3.6 million (US$2.5 million) for mine and mill equipment, process control, and operator training. The Campo Morado program has a time frame of over six months for completion. “An effective mine-to-mill program, with blending of the ore feed to the mill, is a crucial element. The program also includes a wide range of staged improvements in the mill. I am confident that under this initiative we will be adding considerable value to the bottom line at Campo Morado, and hence to Luca as a whole,” Mike Struthers, CEO, Luca Mining, said. 

The company highlighted that its concentrate purchaser Trafigura agreed to restructure a portion of its current outstanding debt, as well as to provide an additional advance of CA$3.6 million to help fund the program. According to Luca Mining, it adjusted Trafigura's loan conversion, opting for a non-interest-bearing convertible loan at CA$.35 per share after three years, excluding share purchase warrants. Additionally, Trafigura expanded its debt facility by CA$3.6 million, gaining a two-year extension on Campo Morado offtake agreements. The company plans a non-brokered private placement, offering 5,714,285 units at CA$0.35 each, with gross proceeds of CA$2 million. 

Furthermore, Luca Mining resolved a CA$11 million debt with Latapi, writing off CA$3 million and converting the remaining CA$7.9 million into equity at CA$0.45 per share. Luca Mining considers this move to significantly improve its financial position. 

Luca Mining stressed the funds will support the optimization Program and general working capital and added that in the coming months, the program aims to generate separate, high-quality copper, zinc, and lead concentrates with improved recoveries and grades, adding significant value to Campo Morado. Notably, total payable copper recovery is expected to rise to 70%, with a more refined concentrate grade of 25% copper. 

According to Ramón Pérez, President, Luca Mining, the company has already started to see improvements resulting from the program's early stages. Pérez highlighted the participation of Ausenco in the development of the plan and said it would increase Campo Morado’s cash flow by 2Q24. “We are still on target to confirm the completion of the build-out of facilities at our Tahuehueto gold mine to an installed capacity of 1,000t/d by year-end, with a declaration of commercial production in 1Q24. We have spent the past several months diligently working to set the company up for a very strong 2024,” Pérez added.